Social Security Funds Paid in Names of the Deceased in Diprung Chuichumma

A recent audit report has revealed that social security allowances were paid in the names of deceased individuals during the fiscal year 2080/81 (2023/24) in Diprung Chuichumma Rural Municipality, Khotang.

According to the Office of the Auditor General, payments totaling over NPR 307,625 were made in the names of 16 individuals who had already passed away. The breakdown by ward shows 3 cases in Ward 1, 4 in Ward 2, 1 in Ward 3, 2 each in Wards 4 and 5, 1 in Ward 6, and 3 in Ward 7.

The report recommends that the misused amount be returned to the federal consolidated fund.

Overpriced Petrol Purchased Without Authorization

The report also highlights irregularities in the procurement of fuel. The municipality purchased petrol from Limchunghang Stationery and Suppliers—a company not authorized by Nepal Oil Corporation to distribute petroleum products. The fuel was bought at a rate NPR 30.60 higher per liter than the approved transport rate of NPR 5.61.

The municipality paid NPR 349,363 for petrol, but failed to provide vehicle logbooks, user names, passenger records, or mileage, making it impossible to verify actual usage. Furthermore, NPR 2.81 million was spent on fuel under vague and unverified conditions.

Violations in Medical and Goods Procurement

The audit also found discrepancies in the procurement of medicine and other supplies. Instead of using a competitive bidding process as required, purchases were made directly and repeatedly from various sources. NPR 5.31 million was spent on these non-compliant purchases.

In another instance, items and services worth NPR 7.49 million were procured directly without following the competitive quotation process mandated by public procurement regulations.

Excessive Meeting Allowances for Tender Evaluations

According to the report, the rural municipality held an excessive number of meetings to evaluate tenders, resulting in questionable allowance payments.

For example:

• Ramche Niketan School Building Tender: 25 meetings, 16 individuals received NPR 153,850.
• Ramailo Panchami Bazar-Chhitapokhari-Kalsing Khola Tender: 22 meetings, 18 people received NPR 164,600.
• Regmitar Panchami Bazar Road Upgrade Tender: 20 meetings, 15 individuals received NPR 130,100.
• Furniture Procurement Tender: 13 meetings, 9 individuals received NPR 94,800.

Public Procurement Regulation 2064, Rule 147, mandates a five-member evaluation committee, allowing external experts only if required. However, up to 18 people received allowances in breach of this rule.

Dubious Travel, Fuel, and Miscellaneous Expenses

The report also criticizes the lack of proper documentation for official travel, such as missing logbooks, purpose of visits, and lack of monitoring reports.

Out of NPR 314.1 million spent under operational expenses:

• NPR 12.48 million was spent on meetings, monitoring, travel allowances, staff incentives, fuel, and miscellaneous programs.
• NPR 1.63 million was spent only on food and snacks.

Unjustified Payments in Education and Curriculum Activities

Unapproved payments were made in the name of curriculum development and school calendars.

• NPR 468,030 was paid for local curriculum draft meetings, typing, and printing.
• NPR 278,800 was spent on creating and publishing academic calendars for schools.

The audit flagged these payments as non-compliant due to lack of proper documentation and standards.

Irregular Fertilizer Distribution

Lastly, the municipality paid NPR 1.2 million directly to Suseli Suppliers Pvt. Ltd. at a rate of NPR 7.20 per kg for transporting chemical fertilizers without using a quotation process.

There is no evidence the fertilizers were sold to farmers at market rates. The report demands proof of 167,500 kg of fertilizers distributed at Gai Ghat market price, or else the amount should be recovered.